HALEYVILLE - One of the nation's largest Pizza Hut and Wendy's restaurant franchisees - NPC International - filed for Chapter 11 bankruptcy Wednesday, July 1, but customers should not see any closures of restaurants.
NPC - which is the franchisee of Haleyville's Pizza Hut - announced in a press release that it voluntarily has filed petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas . NPC intends to use the Chapter 11 process to engage in further discussions with its brand partners, landlords and other creditors to achieve a consensual Chapter 11 plan of reorganization that will best position the company for long-term success in the current restaurant industry environment.
“As our industry has been in the midst of dynamic changes due to shifting consumer preferences and dining behavior, we also have been facing increased labor and commodities costs and a higher level of financial leverage that presents obstacles to achieving our long-term business objectives,” said Jon Weber, CEO & president of NPC’s Pizza Hut division. “These challenges have been magnified recently by the impact and uncertainty of COVID-19, and we believe it is necessary to take proactive steps to strengthen our capital structure, so we have the financial flexibility to continue to adapt to current industry trends. We also intend to use this process to continue to evaluate and optimize our restaurant portfolio so that we are best positioned to meet the needs of consumers across the country.”
NPC’s Pizza Hut and Wendy’s restaurants throughout the country remain open for business on regular schedules. NPC is continuing to closely follow the guidance and recommendations from the Centers for Disease Control and Prevention, as well as from local and federal governments and public agencies, regarding any service restrictions. The Company remains focused on protecting the safety of its team members and guests, while serving and supporting its local communities.
“We would like to thank our outstanding team members for their hard work and dedication,” said Weber. “The quality of our team is one of our company’s greatest strengths, and it is a big part of what gives us confidence about the future. We believe that by reducing our debt level and improving our capital structure, we will create a stronger future.”